. .



Updated on Feb 02, 2002

The trend in the Interbank Money Market remained the same with short term rates available at lower side of the yield curve. Overnight funds initially changed hands at the rock bottom levels with trades evident between 0.50% and 1.00%. This week SBP conducted OMO to stabilize the market and mopped up total amount of Rs.8.90 bln from the system in 4 and 8 weeks at the cut off yield of 4.25% and 5.00% respectively. The outflow was not significant and have no impact on overnight rates, which continue to remain at the same levels. However, it was on Friday, the last day of the week that rates rose sharply with overnight activity initially at 1.50% but soon jumping into the higher side with trades as high as 8.00%.

Brisk activity continued in term market and majority of activity took place in the call market. Three months trades were witnessed as low as 4.25% while six months, tenors traded as low as 5.10%. Meanwhile, one month repo and call offers fell to 4.00% to 4.25% respectively with trades been reported in both at 3.90% and 4.00%. Trades were also conducted for six months T-bills maturity in July at 5.00%. Interest in PIB was prevalent in the market with buyers willing to bid at Rs.105.85 for 28th July 3 years issue and offers were available at Rs.106.5290. Bid and offers for 5 years PIB latest issue was quoted in the range of Rs.105.50 and Rs.106.10. The rise in the PIB prices was generally due to the eased interbank money market and mainly because of the cut in discount rate.

No major change in the market scenario is expected in the days to come and we feel that term rates in the market will remained at the prevailing levels. Aggressive participation is expected in next T-bills auction and foresee further downward adjustment of rates in all tenors.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

06.50

07.00

12.25%

2 Year

07.50

07.75

12.50%

3 Years

08.25

09.00

13.00%

4 Year

08.75

09.50

13.00%

5 Year

09.25

10.00

13.25%

10 Year

10.75

11.25

13.50%

.

 
AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Jan 23 T-BILL Jan 23 Jan 24
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.8,536 Mln  Rs.54,825 Mln  Rs.12,250 Mln



MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

07 Feb 

2,198 Mln

T-Bill

21 Feb 

10,250 Mln



REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

04.50

02.75

01.25

1 Week

04.75

03.50

06.00

1 Month

04.75

05.20

08.75

3 Month

04.40

05.70

10.95

6 Month

05.50

06.10

11.50

1 Year

06.05

06.60

12.25




TREASURY BILL RATES
MATURING THIS WEEK 1 WEEK AGO 1 YEAR AGO

1 Month

04.90

05.50

09.75

2 Month

04.50

05.40

11.00

3 Month

04.60

05.70

11.10

4 Month

04.80

05.80

11.25

5 Month

05.20

06.00

11.40